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Procedure

A Fixed Price Agreement is an agreement where the sponsor pays a firm price for the agreed-upon work, regardless of the actual costs to complete the project. A Milestone Agreement is a contract based on one or more milestones or deliverables. Accountability is based primarily on performance and results. When the costs incurred by a project are not reimbursed by the sponsor, a “deficit” occurs. This document addresses the procedure in such cases, providing a resolution strategy based on different scenarios.

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